when a buyer becomes aware of a difference between a desired state and an actual condition

internal search

an information search in which buyers search their memories for information about products that might solve their problem

external search

information search in which buyers seek information from sources other than their memories

repetition

technique used by advertisers to increase consumers’ information and recall - the more they hear it the more information they recall- too much repetition has the opposite effect and could work negatively against the advertiser (wear out)

consideration set (evoked set)

group of brands within a product category that a buyer views as alternatives for possible purchase

evaluative criteria

objective and subjective product characteristics that are important to a buyer

framing

describing the alternatives and their attributes in a certain manner

purchase

consumer purchases the product or brand yielded by the evaluation of alternatives

cognitive dissonace

buyer’s doubts shortly after a purchase about whether the decision was the right one

physical surroundings

location, store atmosphere, scents, sounds, lighting, weather

social surroundings

characteristics and interactions of others who are present during a purchase decision, such as friends, relatives, salespeople, and other customers

standards of living, credit, buying power, income distribution, national resources, and exchange rates

GDP

the market value of a nation’s total output of goods and services for a given period

import tariff

duty levied by a nation on goods bought outside its borders and brought into the country

quota

limit on the amount of goods an importing country will accept for certain product categories in a specific period.

embargo

government’s suspension of trade in a particular product or with a given country

exchange controls

government restrictions on the amount of a particular currency that can be bought or sold

balance of trade

difference in value between a nation’s exports and its imports

law

it is essential for global marketers to understand the major laws in the countries in which their companies operate

pirated goods

cost $600 billion annually according to the International Anticounterfeiting Coalition, another name for counterfeit goods

SRC (self reference criteria)

is the unconscious reference to one’s own cultural values, experiences, and knowledge

cultural relativism

concept that morality varies from one culture to another and that business practices are therefore differentially define as right or wrong by particular cultures.

alliances

affect companies engaging in international marketing; some create opportunities, and others impose constraints

NAFTA

implemented in 1994, effectively merged Canada, Mexico, and the United States into one market of nearly 460 million consumers

CAFTA

Dominican Republic- Central Free Trade Agreement- among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States has also been ratified in all those countries except Costa Rica.

EU (European Community or Common Market)

stablished in 1958 to promote trade among its members (countries in Europe

APEC (asia pacific rim)

established in 1989, promotes open trade and economic and technical cooperation among member nations around the world

MERCOSUR

"Common Market of the South," is an economic and political agreement among Argentina, Brazil, Paraguay (which is currently suspended), and Uruguay to promote the free movement of goods, services and people among member states

GATT

agreement among nations to reduce worldwide tariffs and increase international trade

WTO

entity that promotes free trade among member nations by eliminating trade barriers and educating individual

dumping

selling products at unfairly prices

trading company

company that links buyers and sellers in different countries

licensing

an alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing

franchising

form of licensing in which a company grants a franchisee the right to market its product, using its name, logo

contract mfg

practice of hiring a foreign firm to produce a designated volume of the domestic firm’s product or a component of it to specification

outsourcing

practice of contracting noncore operations with an organization that specializes in that operation

offshoring

practice of moving a business process that was done domestically at the local factory to a foreign country

offshore outsourcing

practice of contracting with an organization to perform some or all business functions in a country other than the country which the product will be sold

joint venture

partnership between a domestic firm and a foreign firm or government

strategic alliances

partnership that is formed to create a competitive advantage on a worldwide basis

domestic

to adapt to local market differences

limited

exploit economies scale

multinational

exploit economies of global scope

regional

mine optimal locations for activities and resources

globalized

maximize transfer of knowledge across locations

globalized marketing

marketing strategies are developed for the entire world, with focus on similarities across regions and country markets

Section 4

Question

Answer

digital media

electronic media that function using digital codes, when we refer to digital media, we are referring to media available via computers, mobile devices, and other digital devices that have been released in recent years

digital marketing

uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers

e-marketing

refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing

mobile marketing

promotional activity designed for delivery to cell phones, smart phones and other handheld devices, usually as a component of a multi-channel campaign

characteristics of online media

addressability, interactivity, accessibility, connectivity, control

marketing strategies

essential for businesses to learn how to effectively use new social media

bricks-and-clicks

business making online shopping possible while not abandoning its physical stores

product issues

digital media provides opportunities to add a service dimension to traditional products and create new products only accessible on the Internet

'new' channel

digital marketing can be viewed as a new distribution channel that helps businesses increase efficiency.

site-to-store

consumers get free shipping if they pick up their purchases at a Walmart store of their choice (walmart)

push/pull dynamic

firm that provides a product will push to get that product in front of the consumer, while at the same time connectivity aids those channel members that desire to find each other

Digital media marketing facilitates both price and nonprice competition, because internet marketing gives consumers access to more information about costs and prices. Digital connections can help the customer find the price of the product in an instant.